26 U.S.C. § 7345 — Revocation or denial of passport in case of certain tax delinquencies

(a) In general If the Secretary^* receives certification by the Commissioner^* of Internal Revenue that an individual has a seriously delinquent tax debt, the Secretary must transmit such certification to the Secretary of State for action about denial, revocation, or limitation of a passport under section 32101 of the FAST Act. (b) Seriously delinquent tax debt (1) In general For purposes of this section, the term “seriously delinquent tax debt” means an unpaid, legally enforceable Federal tax liability of an individual — (A) which has been assessed, (B) which is greater than $50,000, and (C) about which — (i) a notice of lien has been filed under section 6323 and the administrative rights under section 6320 about such filing have been exhausted or have lapsed, or (ii) a levy^* is made under section 6331. (2) Exceptions Such term must not include — (A) a debt that is being paid in a timely manner under an agreement to which the individual is party under section 6159 or 7122, and (B) a debt about which collection is suspended about the individual — (i) because a due process hearing under section 6330 is requested or pending, or (ii) because an election under subsection (b) or (c) of section 6015 is made or relief under subsection (f) of such section is requested. (c) Reversal of certification (1) In general for an individual about whom the Commissioner makes a certification under subsection (a), the Commissioner must notify the Secretary (and the Secretary must subsequently notify the Secretary of State) if such certification is found to be erroneous or if the debt about such certification is fully satisfied or ceases to be a seriously delinquent tax debt by reason of subsection (b)(2). (2) Timing of notice (A) Full satisfaction of debt for a debt that has been fully satisfied or has become legally unenforceable, such notification must be made by the date required for issuing the certificate of release of lien about such debt under section 6325(a). (B) Innocent spouse relief for an individual who makes an election under subsection (b) or (c) of section 6015, or requests relief under subsection (f) of such section, such notification must be made by 30 days after any such election or request. (C) Installment agreement or offer-in-compromise for an installment agreement under section 6159 or an offer-in-compromise under section 7122, such notification must be made by 30 days after such agreement is entered into or such offer is accepted by the Secretary. (D) Erroneous certification for a certification found to be erroneous, such notification must be made as soon as practicable after such finding. (d) Contemporaneous notice to individual The Commissioner must contemporaneously notify an individual of any certification under subsection (a), or any reversal of certification under subsection (c), about such individual. Such notice must include a description in simple and nontechnical terms of the right to bring a civil action under subsection (e). (e) Judicial review of certification (1) In general After the Commissioner notifies an individual under subsection (d), the taxpayer^* can bring a civil action against the United States in a district court of the United States, or against the Commissioner in the Tax Court^*, to determine whether the certification was erroneous or whether the Commissioner has failed to reverse the certification. For purposes of the preceding sentence, the court first acquiring jurisdiction over such an action must have sole jurisdiction. (2) Determination If the court determines that such certification was erroneous, then the court can order the Secretary to notify the Secretary of State that such certification was erroneous. (f) Adjustment for inflation for a calendar year beginning after 2016, the dollar amount in subsection (b)(1)(B) must be increased by an amount equal to — (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2015” for “calendar year 2016” in subparagraph (A)(ii) of it. If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount must be rounded to the nearest multiple of $1,000. (g) Delegation of certification A certification under subsection (a) or reversal of certification under subsection (c) can only be delegated by the Commissioner of Internal Revenue to the Deputy Commissioner for Services and Enforcement, or the Commissioner of an operating division, of the Internal Revenue Service.